Question

Geeta , a partner was allowed a remuration of 10000 and she agreed to bear expenses of dissloution . actual dissolution expenses paid by geeta was 9500 . pass the necessary journal entry.

Answer 1

Answer:

Realisation Account

Transferring all the liabilities except Partner's Loan Account and Partners' Capital Accounts to the credit side of the account. Crediting the Receipt on the sale of assets to the account. Debiting the payment of Liabilities to the account. Debiting the dissolution expenses of the firm.